What is the expected total contribution margin

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Reference no: EM131197895

J Bryant, Ltd. is a local coat retailer. The store's accountant prepared the following income statement for the month ended January 31.

Sales revenue			$	750,000
Cost of goods sold				300,000
Gross margin				450,000
Less operating expenses
Selling expense	$	23,560
Administrative expense		49,500		73,060
Net operating income			$	376,940

Bryant sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.5 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.Using the format y = mx + b,

develop a cost formula for total expensesIf 2,700 coats are sold next month, what is the expected total contribution margin?

Reference no: EM131197895

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